Deepa.V. (xx) (31 Points)
14 September 2010Can anybody help me in this?
will there be any tax problems if transfer of amount for the purpose of repaying the emi is done by Mr.X to Mr.Y,(transfer is done between their bank a/cs)? Mr. Y is the owner of the property and he is taking loan for it. Due to some financial reasons Mr. X his brother is supporting him for the repayment of emi . will there be any tax related problem for both?
PLS HELP!!!
Rishab
(A.C.A.)
(155 Points)
Replied 14 September 2010
No Problem Mr. X being brother can gift any amount to Mr. Y or he can either give it on loan. No Tax on this amount to either persons.
But Mr. X will not get any Income Tax Benefits for the said payments made to his brother for payment of HL
JINESH SHAH
(PRACTICING CA)
(151 Points)
Replied 14 September 2010
I DONT THINK THERE SHOULD BE ANY PROBLEM. U CAN SHOW IT AS LOAN RECEIVED FROM MR. X IN BOOKS OF MR.Y & REPAY WHENEVER POSSIBLE. INTEREST WILL ALSO BE ALLOWED TO MR. Y.
CAclubindia
